Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 08, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Strategic Realty Trust, Inc. | |
Entity Central Index Key | 1,446,371 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 11,008,668 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investments in real estate | ||
Land | $ 17,715 | $ 15,981 |
Building and improvements | 60,237 | 56,158 |
Tenant improvements | 3,593 | 3,676 |
Investments in real estate, net | 81,545 | 75,815 |
Accumulated depreciation | (11,250) | (10,068) |
Investments in real estate, net | 70,295 | 65,747 |
Properties under development and development costs | ||
Land | 25,851 | 0 |
Buildings | 609 | 0 |
Development costs | 2,012 | 0 |
Properties under development and development costs | 28,472 | 0 |
Cash and cash equivalents | 3,265 | 8,793 |
Restricted cash | 5,869 | 2,693 |
Prepaid expenses and other assets, net | 1,015 | 731 |
Tenant receivables, net | 1,218 | 1,664 |
Investments in unconsolidated joint ventures | 6,469 | 6,902 |
Lease intangibles, net | 4,265 | 4,290 |
Assets held for sale | 0 | 9,769 |
Deferred financing costs, net | 439 | 579 |
TOTAL ASSETS | 121,307 | 101,168 |
LIABILITIES | ||
Notes payable, net | 63,071 | 34,052 |
Accounts payable and accrued expenses | 1,119 | 1,486 |
Amounts due to affiliates | 75 | 49 |
Other liabilities | 1,502 | 1,479 |
Liabilities related to assets held for sale | 0 | 6,909 |
Below market lease intangibles, net | 3,601 | 3,303 |
Deferred gain on sale of properties to unconsolidated joint venture | 1,227 | 1,225 |
TOTAL LIABILITIES | 70,595 | 48,503 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value; 50,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 400,000,000 shares authorized; 11,008,668 and 11,037,948 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively | 111 | 111 |
Additional paid-in capital | 96,480 | 96,684 |
Accumulated deficit | (47,758) | (46,124) |
Total stockholders' equity | 48,833 | 50,671 |
Non-controlling interests | 1,879 | 1,994 |
TOTAL EQUITY | 50,712 | 52,665 |
TOTAL LIABILITIES AND EQUITY | $ 121,307 | $ 101,168 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
preferred stock, shares authorized | 50,000 | 50,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 11,008,668 | 11,037,948 |
Common stock, shares outstanding | 11,008,668 | 11,037,948 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue: | ||||
Rental and reimbursements | $ 2,482 | $ 3,921 | $ 5,190 | $ 8,725 |
Expense: | ||||
Operating and maintenance | 893 | 1,370 | 1,838 | 3,147 |
General and administrative | 586 | 760 | 1,068 | 1,525 |
Depreciation and amortization | 851 | 1,162 | 1,721 | 3,030 |
Transaction expense | 276 | 0 | 280 | 0 |
Interest expense | 510 | 1,354 | 1,110 | 3,048 |
Total expense | 3,116 | 4,646 | 6,017 | 10,750 |
Operating loss | (634) | (725) | (827) | (2,025) |
Other income (loss): | ||||
Equity in income of unconsolidated joint ventures | 276 | 239 | 302 | 110 |
Gain on disposal of real estate | 605 | 99 | 614 | 4,882 |
Gain (loss) on extinguishment of debt | (965) | 33 | (966) | (200) |
Income (loss) before income taxes | (718) | (354) | (877) | 2,767 |
Income taxes | (228) | (80) | (134) | (79) |
Net income (loss) | (946) | (434) | (1,011) | 2,688 |
Net income (loss) attributable to non-controlling interests | (35) | (15) | (37) | 246 |
Net income (loss) attributable to common stockholders | $ (911) | $ (419) | $ (974) | $ 2,442 |
Earnings (loss) per common share - basic and diluted (in dollars per share) | $ (0.08) | $ (0.04) | $ (0.09) | $ 0.22 |
Weighted average shares outstanding used to calculate earnings (loss) per common share - basic and diluted (in shares) | 11,008,017 | 10,967,917 | 11,022,603 | 10,968,769 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | Non-controlling Interests |
BALANCE at Dec. 31, 2015 | $ 52,665 | $ 111 | $ 96,684 | $ (46,124) | $ 50,671 | $ 1,994 |
BALANCE (in shares) at Dec. 31, 2015 | 11,037,948 | |||||
Conversion of OP units to common shares | 0 | $ 0 | 52 | 0 | 52 | (52) |
Conversion of OP units to common shares (in shares) | 9,588 | |||||
Redemption of common shares | (256) | $ 0 | (256) | 0 | (256) | 0 |
Redemption of common shares (in shares) | (38,868) | |||||
Quarterly distributions | (686) | $ 0 | 0 | (660) | (660) | (26) |
Net loss | (1,011) | 0 | 0 | (974) | (974) | (37) |
BALANCE at Jun. 30, 2016 | $ 50,712 | $ 111 | $ 96,480 | $ (47,758) | $ 48,833 | $ 1,879 |
BALANCE (in shares) at Jun. 30, 2016 | 11,008,668 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (1,011) | $ 2,688 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Net gain on disposal of real estate | (614) | (4,882) |
Loss on extinguishment of debt | (966) | (200) |
Equity in income of unconsolidated joint ventures | (302) | (110) |
Straight-line rent | (42) | (51) |
Amortization of deferred costs and notes payable premium/discount | 510 | 287 |
Depreciation and amortization | 1,721 | 3,030 |
Amortization of above and below-market leases | (92) | (75) |
Bad debt expense | 24 | 25 |
Interest income on note receivable | 0 | (152) |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (284) | (167) |
Tenant receivables | 465 | 261 |
Accounts payable and accrued expenses | (367) | (700) |
Amounts due to affiliates | 26 | 72 |
Other liabilities | 7 | 273 |
Net change in restricted cash for operational expenditures | (163) | (872) |
Net cash provided by (used in) operating activities | 844 | (173) |
Cash flows from investing activities: | ||
Net proceeds from the sale of real estate | 8,737 | 53,058 |
Acquisition of real estate | (5,630) | 0 |
Investment in properties under development and costs of development | (28,472) | 0 |
Improvements, capital expenditures, and leasing costs | (203) | (587) |
Investments in unconsolidated joint ventures | 0 | (4,555) |
Issuance of note receivable | 0 | (7,000) |
Distributions from unconsolidated joint ventures | 735 | 0 |
Net change in restricted cash from investments in consolidated variable interest entities | (3,458) | 0 |
Net change in restricted cash for capital expenditures | 445 | 693 |
Net cash provided by (used in) investing activities | (27,846) | 41,609 |
Cash flows from financing activities: | ||
Redemption of member interests | 0 | (2,102) |
Redemption of common shares | (256) | (554) |
Quartertly distributions | (686) | (1,426) |
Proceeds from notes payable | 32,700 | 0 |
Repayment of notes payable | (8,680) | (36,984) |
Payment of penalties associated with early repayment of notes payable | (839) | 0 |
Payment of loan fees and financing costs | (765) | 0 |
Net cash provided by (used in) financing activities | 21,474 | (41,066) |
Net increase (decrease) in cash and cash equivalents | (5,528) | 370 |
Cash and cash equivalents - beginning of period | 8,793 | 3,211 |
Cash and cash equivalents - end of period | 3,265 | 3,581 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Distributions declared but not paid | 0 | 680 |
Cash paid for interest, net of amounts capitalized | $ 717 | $ 3,619 |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 6 Months Ended |
Jun. 30, 2016 | |
Organization and Business [Abstract] | |
ORGANIZATION AND BUSINESS | Strategic Realty Trust, Inc. (the “Company”) was formed on September 18, 2008, as a Maryland corporation. Effective August 22, 2013, the Company changed its name from TNP Strategic Retail Trust, Inc. to Strategic Realty Trust, Inc. The Company believes it qualifies as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), and has elected REIT status beginning with the taxable year ended December 31, 2009, the year in which the Company began material operations. Since the Company’s inception, its business has been managed by an external advisor. The Company has no direct employees and all management and administrative personnel responsible for conducting the Company’s business are employed by its advisor. Currently, the Company is externally managed and advised by SRT Advisor, LLC, a Delaware limited liability company (the “Advisor”) pursuant to an advisory agreement with the Advisor (the “Advisory Agreement”) initially executed on August 10, 2013, and subsequently renewed in August 2014, August 2015 and August 2016. The current term of the Advisory Agreement terminates on August 10, 2017. The Advisor is an affiliate of Glenborough, LLC (together with its affiliates, “Glenborough”), a privately held full-service real estate investment and management company focused on the acquisition, management and leasing of commercial properties. Substantially all of the Company’s business is conducted through Strategic Realty Operating Partnership, L.P. (the “OP”). During the Company’s initial public offering (“Offering”), as the Company accepted subscriptions for shares of its common stock, it transferred substantially all of the net proceeds of the initial public offering to the OP as a capital contribution. The Company is the sole general partner of the OP. As of June 30, 2016 and December 31, 2015, the Company owned 96.3 96.2 The Company’s principal demand for funds has been for the acquisition of real estate assets, the payment of operating expenses, interest on outstanding indebtedness, the payment of distributions to stockholders, and investments in unconsolidated joint ventures as well as development of properties. Substantially all of the proceeds of the completed Offering have been used to fund investments in real properties and other real estate-related assets, for payment of operating expenses, for payment of interest, for payment of various fees and expenses, such as acquisition fees and management fees, and for payment of distributions to stockholders. The Company’s available capital resources, cash and cash equivalents on hand and sources of liquidity are currently limited. The Company expects its future cash needs will be funded using cash from operations, future asset sales, debt financing and the proceeds to the Company from any sale of equity that it may conduct in the future. The Company invests in and manages a portfolio of income-producing retail properties, located in the United States, real estate-owning entities and real estate-related assets, including the investment in or origination of mortgage, mezzanine, bridge and other loans related to commercial real estate. The Company has invested directly, and indirectly through joint ventures, in a portfolio of income-producing retail properties located throughout the United States, with a focus on grocery anchored multi-tenant retail centers, including neighborhood, community and lifestyle shopping centers, multi-tenant shopping centers and free standing single-tenant retail properties. During the first quarter of 2016, the Company invested, through joint ventures, in two significant retail projects under development. As of June 30, 2016, in addition to the development projects, the Company’s portfolio of properties was comprised of 10 694,000 6 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements as contained within the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the Securities and Exchange Commission (“the SEC”), including the instructions to Form 10-Q and Regulation S-X. The unaudited condensed consolidated financial statements include the accounts of the Company, the OP, their direct and indirect owned subsidiaries, and the accounts of joint ventures that are determined to be variable interest entities for which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows have been included. The Company evaluates the need to consolidate joint ventures and variable interest entities based on standards set forth in ASC Topic 810, Consolidation (“ASC 810”). In determining whether the Company has a controlling interest in a joint venture or a variable interest entity and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the partners/members, as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. As of June 30, 2016, the Company held ownership interests in two unconsolidated joint ventures. Refer to Note 4, “Investments in Unconsolidated Joint Ventures” for additional information. As of June 30, 2016, the Company held variable interests in two variable interest entities and consolidated those entities. Refer to Note 5, “Variable Interest Entities” for additional information. Properties Under Development The initial cost of properties under development includes the acquisition cost of the property, direct development costs and borrowing costs directly attributable to the development. Borrowing costs associated with direct expenditures on properties under development are capitalized. The amount of capitalized borrowing costs is determined by reference to borrowings specific to the project, where relevant. Borrowing costs are capitalized from the commencement of the development until the date of practical completion where the property is substantially ready for its intended use. Capitalization of borrowing costs is suspended if there are prolonged periods when development activity is interrupted. Practical completion is when the property is capable of operating in the manner intended by management. Interest on projects is based on interest rates in place during the development period, and is capitalized until the project is ready for its intended use. The amount of interest capitalized during the six months ended June 30, 2016, was approximately $ 1.2 Reclassifications Certain prior period amounts have been reclassified to conform with current period’s presentation. The reclassifications had no effect on the Company’s financial condition, results of operations, or cash flows. As of June 30, 2016, in respect to the Company’s adoption of Accounting Standards Update (“ASU”) No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), the Company classified deferred financing costs, net of accumulated amortization, as a contra-liability to notes payable on the condensed consolidated balance sheet. ASU 2015-03 requires retrospective application, wherein the balance sheet of each period presented should be adjusted to reflect the effects of the new guidance. Accordingly, for comparative purposes herein, the Company reclassified the December 31, 2015 balance of $ 0.3 0.1 Assets sold or held for sale and related liabilities have been reclassified on the condensed consolidated balance sheets. Newly Adopted Accounting Pronouncements The Company adopted ASU 2015-03 on a retrospective basis, effective with the quarter ended March 31, 2016. The amendments in ASU 2015-03 require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU 2015-03 is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. The adoption of ASU 2015-03 would change the presentation of debt issuance costs as the Company presents debt issuance costs as deferred financing costs, net on the accompanying condensed consolidated balance sheets. ASU 2015-03 does not address how debt issuance costs related to line-of-credit arrangements should be presented on the balance sheet or amortized. Given this absence of authoritative guidance within ASU 2015-03, the FASB issued ASU 2015-15, Interest Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, which clarifies that the SEC Staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Effective January 2016, the Company presents deferred financing costs, net, as a contra-liability in periods when there is an associated debt liability on the balance sheet, rather than as a deferred asset. If no associated debt liability is recorded on the balance sheet, deferred financing costs will be presented as a deferred asset. The adoption of ASU 2015-03 did not have a material impact on the Company’s condensed consolidated financial statements. The Company adopted ASU 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustment (“ASU 2015-16”) effective with the quarter ended March 31, 2016. The amendments in ASU 2015-16 require an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Further, the acquirer is required to record, in the financial statements for the same period, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Entities must also present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current period earnings by the line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance should be applied prospectively and early adoption is permitted. The adoption of ASU 2015-16 had no impact on the Company’s condensed consolidated financial statements. Recent Accounting Pronouncements The FASB issued the following Accounting Standards Updates (“ASUs”) which could have potential impact to the Company’s consolidated financial statements: In June 2016, the FASB issued ASU no. 2016-13, Financial Instruments Credit Losses (“ASU 2016-13”). ASU 2016-13 requires a financial asset, measured at amortized cost basis to be presented at the net amount expected to be collected. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with adoption permitted for fiscal years beginning after December 15, 2018. Adjustments resulting from adopting ASU 2016-13 shall be applied through a cumulative-effect adjustment to retained earnings. The Company is currently evaluating the impact of the guidance on its condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which effectively defers the adoption of ASU 2014-09 to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2016. Companies may apply either a full retrospective or a modified retrospective approach to adopt this guidance. In 2016, the FASB issued ASU No. 2016-08, ASU No. 2016-09 and ASU No. 2016-12, which provide interpretive clarifications on the new guidance in Topic 606. The Company is currently evaluating the transition methods and the impact of the guidance on its condensed consolidated financial statements. |
REAL ESTATE INVESTMENTS
REAL ESTATE INVESTMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate Investments, Net [Abstract] | |
REAL ESTATE INVESTMENTS | 3. REAL ESTATE INVESTMENTS Acquisition of Properties On June 14, 2016, the Company, through an indirect subsidiary, purchased a 100% ownership interest in two retail properties located in San Francisco, California (the “San Francisco Properties”) from each of Octavia Gateway Holdings, LLC and Grove Street Hayes Valley, LLC, each a Delaware limited liability company and each a subsidiary of DDG Partners LLC. The sellers were not affiliated with the Company or the Advisor. The San Francisco Properties encompass four retail condominiums with an aggregate of 5,640 5.6 In conjunction with the acquisition of the San Francisco Properties, on May 4, 2016, the Company, through an indirect subsidiary, entered into a purchase agreement to acquire a retail property from Hayes Street Hayes Valley LLC, a Delaware limited liability company and a subsidiary of DDG Partners LLC. The seller was not affiliated with the Company or its external advisor. The purchase of this retail property is expected to close later in 2016. The following table summarizes the estimated fair values of the acquired tangible and intangible assets and assumed liabilities as of the acquisition date (amounts in thousands): Property Buildings and Land Lease Intangibles Below-Market Estimated Fair 8 Octavia $ 1,969 $ 734 $ 143 $ (106) $ 2,740 400 Grove 2,111 1,000 110 (331) 2,890 $ 4,080 $ 1,734 $ 253 $ (437) $ 5,630 The initial accounting for the business combinations is incomplete with respect to the values assigned to tangible and intangible assets acquired and liabilities assumed as the Company did not have sufficient time to finalize these respective valuations and, accordingly, amounts are subject to change within the purchase price allocation period. The Company expects to finalize the allocation of purchase consideration as soon as practicable and no later than one year from the acquisition date. Lease intangibles and below-market lease liabilities generally relate to commercial leases. As of June 30, 2016, the remaining weighted-average amortization period of lease intangibles and below-market lease liabilities was 14.0 14.2 For the three and six months ended June 30, 2016, the Company incurred $ 0.2 2016 Sale of Properties On April 4, 2016, the Company consummated the disposition of Bloomingdale Hills, located in Riverside, Florida, for a sales price of approximately $ 9.2 5.3 3 0.6 25,000 73,000 2015 Sale of Properties 53.6 Property Location Acquisition Date Gross Original (1) Osceola Village Kissimmee, Florida 10/11/2011 $ 22,000 $ 21,800 (2) Constitution Trail Normal, Illinois 10/21/2011 23,100 18,000 Aurora Commons Aurora, Ohio 3/20/2012 8,500 7,000 Total $ 53,600 $ 46,800 (1) The original purchase price amounts do not include acquisition fees. (2) The original purchase price for Osceola Village included an additional pad which was sold for approximately $ 0.9 The sale of the three properties did not represent a strategic shift that will have a major effect on the Company’s operations and financial results and, as a result, was not included in discontinued operations for the six months ended June 30, 2015. The Company’s condensed consolidated statements of operations include net operating losses of approximately $ 16,000 0.3 The sale of Osceola Village, Constitution Trail and Aurora Commons (the “SGO Properties”) was completed in connection with the formation of the SGO Joint Venture. The three properties were sold to the SGO Joint Venture, and the closing of the sale was conditioned on the Company receiving a 19 4.5 36.4 |
INVESTMENTS IN UNCONSOLIDATED J
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES | 4. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES On September 30, 2015, the Company, through wholly-owned subsidiaries, formed a joint venture (the “SGO MN Joint Venture”) with MN Retail Grand Avenue Partners, LLC, a subsidiary of Oaktree Real Estate Opportunities Fund V.I. L.P. (“Oaktree”) and GLB SGO MN, LLC, a wholly-owned subsidiary of Glenborough Property Partners, LLC (“GPP”). GPP is an affiliate of the Advisor and the Company’s property manager. On March 11, 2015, the Company, through a wholly-owned subsidiary, formed a joint venture (the “SGO Joint Venture”) with Grocery Retail Grand Avenue Partners, LLC, a subsidiary of Oaktree, and GLB SGO, LLC, a wholly-owned subsidiary of GPP. These joint ventures own property types similar to properties that are directly owned by the Company. Ownership Interest Investment Joint Venture Date of Investment June 30, December 31, June 30, December 31, SGO Retail Acquisitions Venture, LLC 3/11/2015 19 % 19 % $ 3,852 $ 4,098 SGO MN Retail Acquisitions Venture, LLC 9/30/2015 10 % 10 % 2,617 2,804 Total $ 6,469 $ 6,902 The Company’s off-balance sheet arrangements consist primarily of investments in the joint ventures as set forth in the table above. The joint ventures typically fund their cash needs through secured debt financings obtained by and in the name of the joint venture entity. The joint ventures’ debts are secured by a first mortgage, are without recourse to the joint venture members, and do not represent a liability of the members other than carve-out guarantees for certain matters such as environmental conditions, misuse of funds and material misrepresentations. As of June 30, 2016, the Company has provided carve-out guarantees in connection with the two aforementioned unconsolidated joint ventures; in connection with those carve-out guarantees, the Company has certain rights of recovery from the joint venture members. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2016 | |
Organization and Business [Abstract] | |
VARIABLE INTEREST ENTITIES | 5. VARIABLE INTEREST ENTITIES The Company has variable interests in, and is the primary beneficiary of, variable interest entities (“VIEs”) through its investments in (i) a joint venture with the Gelson’s Joint Venture and the Wilshire Joint Venture (both as defined below). The Company has consolidated the accounts of these variable interest entities. For further information, refer to Note 2. “Summary of Significant Accounting Policies,” under “Principles of Consolidation and Basis of Presentation.” Gelson’s Joint Venture On January 7, 2016, the Company, through wholly-owned subsidiaries, entered into the Limited Liability Company Agreement of Sunset & Gardner Investors, LLC (the “Gelson’s Joint Venture Agreement”) to form a joint venture (the” Gelson’s Joint Venture”) with Sunset & Gardner LA, LLC (“S&G LA” and together with the Company the “Gelson’s Members”), a subsidiary of Cadence Capital Investments, LLC (“Cadence”). Cadence is a real estate development and investment firm focused on commercial properties. They offer high-quality, market-driven developments, and have expertise in market planning and site selection build-to-suit and small center developments, redevelopment and repositioning of existing properties. The Gelson’s Joint Venture Agreement provides for the ownership and operation of certain real property by the Gelson’s Joint Venture, in which the Company owns a 100 50 7 0.7 20 On January 28, 2016, the Gelson’s Joint Venture used the capital contributions of the Company, together with the proceeds of a loan from Buchanan Mortgage Holdings, LLC in the amount of $ 10.7 13.0 38,000 Pursuant to the Gelson’s Joint Venture Agreement, S&G LA will manage and conduct the day-to-day operations and affairs of the Gelson’s Joint Venture, subject to certain major decisions set forth in the Gelson’s Joint Venture Agreement that require the consent of all the Gelson’s Members. Income, losses and distributions will generally be allocated based on the Gelson’s Members’ respective capital and profits interests. Additionally, in certain circumstances described in the Gelson’s Joint Venture Agreement, the Company may be required to make additional capital contributions to the Joint Venture, in proportion to the Gelson’s Members’ respective ownership interests. Until the Company has received back its capital contribution and specified preferred returns, all distributions go to the Company; thereafter, the Gelson’s Joint Venture will distribute the profits 50 50 3032 Wilshire Joint Venture On December 21, 2015, the Company, through wholly-owned subsidiaries, entered into the Limited Liability Company Agreement of 3032 Wilshire Investors, LLC (the “Wilshire Joint Venture Agreement”) to form a joint venture (the “Wilshire Joint Venture”) with 3032 Wilshire SM, LLC, a subsidiary of Cadence (together with the Company, the “Wilshire Members”). On December 14, 2015 and January 5, 2016, the Company paid deposits in the amounts of $ 0.5 0.1 5.7 100 50 On March 8, 2016, the Wilshire Joint Venture used the deposits and capital contribution of the Company, together with the proceeds of a loan from Buchanan Mortgage Holdings, LLC in the amount of $ 8.5 13.5 Pursuant to the Wilshire Joint Venture Agreement, 3032 Wilshire SM will manage and conduct the day-to-day operations and affairs of the Wilshire Joint Venture, subject to certain major decisions set forth in the Wilshire Joint Venture Agreement that require the consent of all the Wilshire Members. Income, losses and distributions will generally be allocated based on the Wilshire Members’ respective capital and profits interests. Additionally, in certain circumstances described in the Wilshire Joint Venture Agreement, the Company may be required to make additional capital contributions to the Wilshire Joint Venture, in proportion to the Wilshire Members’ respective ownership interests. Until the Company has received back its capital contribution and specified preferred returns, all distributions go to the Company; thereafter, the Wilshire Joint Venture will distribute the profits 50 50 June 30, 2016 ASSETS Properties under development and development costs: Land $ 25,851 Building 609 Development costs 2,012 Properties under development and development costs 28,472 Restricted cash 2,867 Cash and cash equivalents 340 Prepaid expenses and other assets, net 22 Tenant receivables, net 25 TOTAL ASSETS (1) $ 31,726 LIABILITIES Notes payable, net (2) $ 18,748 Accounts payable and accrued expenses 360 Amounts due to affiliates 283 Other liabilities 40 TOTAL LIABILITIES $ 19,431 (1) The assets of the Gelson’s Joint Venture and Wilshire Joint Venture can be used only to settle obligations of the respective consolidated joint ventures. (2) Includes reclassification of $ 0.5 |
FUTURE MINIMUM RENTAL INCOME
FUTURE MINIMUM RENTAL INCOME | 6 Months Ended |
Jun. 30, 2016 | |
Minimum Rents [Abstract] | |
FUTURE MINIMUM RENTAL INCOME | 6. FUTURE MINIMUM RENTAL INCOME Operating Leases The Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of June 30, 2016, the leases at the Company’s properties have remaining terms (excluding options to extend) of up to 20 years with a weighted-average remaining term (excluding options to extend) of 5 years. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit and/or a letter of credit. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying condensed consolidated balance sheets and totaled approximately $ 0.2 Remainder of 2016 $ 3,711 2017 7,036 2018 6,074 2019 5,471 2020 4,543 Thereafter 11,815 Total $ 38,650 |
LEASE INTANGIBLES AND BELOW-MAR
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES | 6 Months Ended |
Jun. 30, 2016 | |
Intangibles [Abstract] | |
ACQUIRED LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES | 7. LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES Lease Intangibles Below-Market Lease Liabilities June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Cost $ 8,191 $ 8,089 $ (4,783) $ (4,463) Accumulated amortization (3,926) (3,799) 1,182 1,160 Total $ 4,265 $ 4,290 $ (3,601) $ (3,303) Lease Intangibles Below-Market Lease Liabilities Three Months Ended June 30, Three Months Ended June 30, 2016 2015 2016 2015 Amortization $ (235) $ (357) $ 67 $ 95 Lease Intangibles Below-Market Lease Liabilities Six Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Amortization $ (486) $ (950) $ 139 $ 212 |
NOTES PAYABLE, NET
NOTES PAYABLE, NET | 6 Months Ended |
Jun. 30, 2016 | |
Debt [Abstract] | |
NOTES PAYABLE | 8. NOTES PAYABLE, NET Principal Balance Interest Rates At June 30, December 31, June 30, KeyBank credit facility (1) $ 10,500 $ 2.95 % Secured term loans 24,492 24,701 5.10 % Mortgage loans 9,614 9,690 5.63 % Mortgage loans secured by properties under development (2) 19,200 9.5% - 10.0 % Deferred financing costs, net (3) (735) (339) n/a $ 63,071 $ 34,052 (1) The KeyBank credit facility is a revolving credit facility with an initial maximum aggregate commitment of $ 30.0 60.0 (2) Comprised of $10.7 million and $8.5 million associated with the Company’s investment in the Gelson’s Joint Venture and the Wilshire Joint Venture, respectively. (3) Reclassification of deferred financing costs, net of accumulated depreciation, as a contra-liability in accordance with ASU 2015-03. During the three and six months ended June 30, 2016, the Company incurred and expensed approximately $ 0.5 1.1 0.1 0.2 1.4 3.0 0.1 0.3 0.9 1.2 0.2 0.3 As of June 30, 2016 and December 31, 2015, interest expense payable was approximately $ 0.3 0.2 0.2 Remainder of 2016 $ 293 2017 39,685 2018 473 2019 23,355 Total (1) $ 63,806 (1) Total future principal payments reflect actual amounts due to creditors, and excludes reclassification of $ 0.7 Recent Financing Transactions KeyBank Credit Facility On March 7, 2016, the Company drew $ 6.0 On June 9, 2016, the Company drew $ 7.5 Mortgage Loans Secured by Properties Under Development In connection with the Company’s investment in the Wilshire Joint Venture and the acquisition of the Wilshire Property (as defined in Note 5. “Variable Interest Entities” to the condensed consolidated financial statements contained within this Quarterly Report on Form 10-Q), the Company has consolidated borrowings of $ 8.5 10.0 March 7, 2017 In connection with the Company’s investment in the Gelson’s Joint Venture (as defined in Note 5. “Variable Interest Entities” to be condensed consolidated financial statements contained within this Quarterly Report on Form 10-Q) and the acquisition of the Gelson’s Property (defined in Note 5. “Variable Interest Entities” to the condensed consolidated financial statements contained within this Quarterly Report on Form 10-Q), the Company has consolidated borrowings of $ 10.7 9.5 January 27, 2017 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | 9. FAIR VALUE DISCLOSURES Certain financial assets and liabilities are measured at fair value on a recurring basis. The Company determines fair value using the following hierarchy: · Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; · Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and · Level 3 - prices or valuation techniques where little or no market data is available for inputs that are significant to the fair value measurement. The Company believes the total carrying values reflected on its condensed consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and amounts due to affiliates reasonably approximate their fair values due to their short-term nature. The fair value of the Company’s notes payable is estimated using a present value technique based on contractual cash flows and management’s observations of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. The Company significantly reduces the amount of judgment and subjectivity in its fair value determination through the use of cash flow inputs that are based on contractual obligations. Discount rates are determined by observing interest rates published by independent market participants for comparable instruments. The Company classifies these inputs as Level 2 inputs. Carrying Value (1) Fair Value (2) June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Notes Payable $ 63,071 $ 34,052 $ 64,317 $ 34,760 (1) The carrying value of the Company’s notes payable represents the outstanding principal as of June 30, 2016, and December 31, 2015. The carrying values and fair values of the notes payable include the reclassification of deferred financing costs, net, of approximately $0.7 million and approximately $0.3 million, as a contra-liability, as of June 30, 2016 and December 31, 2015, respectively. (2) The estimated fair value of the notes payable is based upon the indicative market prices of the Company’s notes payable based on prevailing market interest rates. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | 10. EQUITY Share Redemption Program On April 1, 2015, the Company’s board of directors approved the reinstatement of the share redemption program (which had been suspended since January 15, 2013) and adopted an Amended and Restated Share Redemption Program (the “Amended and Restated SRP”). Under the Amended and Restated SRP, only shares submitted for repurchase in connection with the death or “qualifying disability” (as defined in the Amended and Restated SRP) of a stockholder are eligible for repurchase by the Company. The number of shares to be redeemed is limited to the lesser of (i) a total of $ 2.0 1.0 5 The redemption price for shares that are redeemed is 100 The Amended and Restated SRP provides that any request to redeem less than $ 5,000 The other material terms of the Amended and Restated SRP are consistent with the terms of the share redemption program that was in effect immediately prior to January 15, 2013. On August 7, 2015, the board of directors approved the amendment and restatement of the Amended and Restated SRP (the “Second Amended and Restated SRP” and, together with the Amended and Restated SRP, the “SRP”). Under the Second Amended and Restated SRP, the redemption date with respect to third quarter 2015 redemptions was November 10, 2015 or the next practicable date as the Chief Executive Officer determined so that redemptions with respect to the third quarter of 2015 were delayed until after the payment date for the Special Distribution. With this revision, stockholders who were to have 100 During the three and six months ended June 30, 2016, the Company redeemed 8,147 38,868 54 0.3 77,916 0.6 404,771 3.3 Quarterly Distributions In order to qualify as a REIT, the Company is required to distribute at least 90 Under the terms of the Key Bank credit facility, the Company may pay distributions to its investors so long as the total amount paid does not exceed 100 Distribution Distribution Per Share of Common Total Common Total Common Distribution Record Payable Stock / Stockholders Unit Holders Total Date Date Common Unit Distribution Distribution Distribution First Quarter 2016 3/31/2016 4/29/2016 $ 0.06 $ 660 $ 26 $ 686 Distribution Distribution Per Share of Common Total Common Total Common Distribution Record Payable Stock / Stockholders Unit Holders Total Date Date Common Unit Distribution Distribution Distribution First Quarter 2015 3/31/2015 4/30/2015 $ 0.06 $ 658 $ 26 $ 684 Second Quarter 2015 6/30/2015 7/30/2015 0.06 654 26 680 Third Quarter 2015 9/30/2015 10/31/2015 0.06 654 26 680 Fourth Quarter 2015 12/31/2015 1/30/2016 0.06 661 25 686 Total $ 2,627 $ 103 $ 2,730 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 11. EARNINGS PER SHARE Earnings per share (“EPS”) is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed after adjusting the basic EPS computation for the effect of potentially dilutive securities outstanding during the period. The effect of non-vested shares, if dilutive, is computed using the treasury stock method. The Company applies the two-class method for determining EPS as its outstanding shares of non-vested restricted stock are considered participating securities as dividend payments are not forfeited even if the underlying award does not vest. There is no unvested stock as of June 30, 2016. The Company’s excess of distributions over earnings related to participating securities are shown as a reduction in income (loss) attributable to common stockholders in the Company’s computation of EPS. For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 Numerator - basic and diluted Net income (loss) $ (946) $ (434) $ (1,011) $ 2,688 Net income (loss) attributable to non-controlling interests (35) (15) (37) 246 Net income (loss) attributable to common shares $ (911) $ (419) $ (974) $ 2,442 Denominator - basic and diluted Basic weighted average common shares 11,008,017 10,967,917 11,022,603 10,968,769 Effect of dilutive securities Common Units (1) Diluted weighted average common shares 11,008,017 10,967,917 11,022,603 10,968,769 Earnings (loss) per common share - basic and diluted Net earnings (loss) attributable to common shares $ (0.08) $ (0.04) $ (0.09) $ 0.22 (1) The effect of 422,308 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | 12. RELATED PARTY TRANSACTIONS On August 7, 2013, the Company entered into the Advisory Agreement with the Advisor. On August 10, 2016, the Advisory Agreement with the Advisor was renewed for an additional twelve months, beginning on August 10, 2016. The Advisor manages the Company’s business as the Company’s external advisor pursuant to the Advisory Agreement. Pursuant to the Advisory Agreement, the Company will pay the Advisor specified fees for services related to the investment of funds in real estate and real estate-related investments, management of the Company’s investments and for other services. On July 9, 2013, SRT Manager, an affiliate of the Advisor, acquired an initial 12 8.33 2.1 8.33 On March 11, 2015, the Company, through a wholly-owned subsidiary, entered into the Limited Liability Company Agreement of SGO Retail Acquisitions Venture, LLC to form the SGO Joint Venture. On September 30, 2015, the Company, through wholly-owned subsidiaries, entered into the Limited Liability Company Agreement of SGO MN Retail Acquisitions Venture, LLC to form the SGO MN Joint Venture. For additional information regarding the SGO Joint Venture and the SGO MN Joint Venture, refer to Note 4. “Investments in Unconsolidated Joint Ventures.” Summary of Related Party Fees Advisor Fees Incurred Payable as of Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, Expensed 2016 2015 2016 2015 2016 2015 Acquisition fees $ 56 $ $ 58 $ $ $ Asset management fees 230 210 447 530 71 19 Reimbursement of operating expenses 48 98 4 27 Property management fees 97 150 221 351 3 Disposition fees 115 115 525 Guaranty fees (1) 1 Total $ 546 $ 360 $ 939 $ 1,407 $ 75 $ 49 Capitalized Acquisition fees $ $ $ 273 $ $ $ Leasing fees 92 39 103 66 Legal leasing fees 21 18 33 56 Construction management fees 10 1 15 Financing fees 32 Total $ 113 $ 67 $ 410 $ 169 $ $ (1) Guaranty fees were paid by the Company to its prior advisor, TNP Strategic Retail Advisor, LLC. Acquisition Fee Under the Advisory Agreement, the Advisor is entitled to receive an acquisition fee equal to 1 1 Origination Fee Under the Advisory Agreement, the Advisor is entitled to receive an origination fee equal to 1 Financing Coordination Fee Under the Advisory Agreement, the Advisor is entitled to receive a financing coordination fee equal to 1% of the amount made available and/or outstanding under any (1) financing obtained or assumed, directly or indirectly, by the Company or the OP and used to acquire or originate investments; or (2) the refinancing of any financing obtained or assumed, directly or indirectly, by the Company or the OP. Asset Management Fee Under the Advisory Agreement, the Advisor is entitled to receive an asset management fee equal to a monthly fee of one-twelfth (1/12th) of 0.6 250,000 Reimbursement of Operating Expenses The Company reimburses the Advisor for all expenses paid or incurred by the Advisor in connection with the services provided to the Company, subject to the limitation that the Company will not reimburse the Advisor for any amount by which the Company’s total operating expenses (including the asset management fee described below) at the end of the four preceding fiscal quarters exceeded the greater of (1) 2% of its average invested assets (as defined in the Company’s Articles of Amendment and Restatement (the “Charter”)); or (2) 25% of its net income (as defined in the Charter) determined without reduction for any additions to depreciation, bad debts or other similar non-cash expenses and excluding any gain from the sale of the Company’s assets for that period (the “2%/25% Guideline”). The Advisor is required to reimburse the Company quarterly for any amounts by which total operating expenses exceed the 2%/25% Guideline in the previous expense year that the independent directors do not approve. The Company will not reimburse the Advisor for any of its personnel costs or other overhead costs except for customary reimbursements for personnel costs under property management agreements entered into between the OP and the Advisor or its affiliates. Notwithstanding the above, the Company may reimburse the Advisor for expenses in excess of the 2%/25% Guideline if a majority of the independent directors determine that such excess expenses are justified based on unusual and non-recurring factors. For the three and six months ended June 30, 2016 and 2015, the Company’s total operating expenses (as defined in the Charter) did not exceed the 2%/25% Guideline. Property Management Fee Under the property management agreements between the Company and Glenborough, Glenborough is entitled to receive property management fees calculated at a maximum of up to 4 Disposition Fee Under the Advisory Agreement, if the Advisor or its affiliates provide a substantial amount of services, as determined by the Company’s independent directors, in connection with the sale of a real property, the Advisor or its affiliates may be paid disposition fees up to 50 3 Guaranty Fees In connection with certain acquisition financings, the Company’s former chairman and former co-chief executive officer and/or Thompson National Properties, LLC had executed certain guaranty agreements to the respective lenders. As consideration for such guaranty, the Company entered into a reimbursement and fee agreement to provide for an upfront payment and an annual guaranty fee payment for the duration of the guarantee period. In March 2015, the Company retired the outstanding notes payable related to Osceola Village resulting in the expiration of the remaining guaranty agreement. Leasing Fee Under the property management agreements, Glenborough is entitled to receive a separate fee for the leases of new tenants, and for expansions, extensions and renewals of existing tenants in an amount not to exceed the fee customarily charged by similarly situated parties rendering similar services in the same geographic area for similar properties. Legal Leasing Fee Under the property management agreements, Glenborough is entitled to receive a market-based legal leasing fee for the negotiation and production of new leases, renewals, and amendments. Construction Management Fee In connection with the construction or repair in or about a property, the property manager is responsible for coordinating and facilitating the planning and the performance of all construction and is entitled to receive a fee equal to 5 Related-Party Fees Paid by the Unconsolidated Joint Ventures The unconsolidated joint ventures are party to certain agreements with Glenborough for services related to the investment of funds and management of the joint ventures’ investments, as well as the day-to-day management, operation and maintenance of the properties owned by the joint ventures. The joint ventures pay fees to Glenborough for these services. The SGO Joint Venture and the SGO MN Joint Venture recognized related-party fees and reimbursements of $ 0.1 0.3 0.3 0.5 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES Economic Dependency The Company is dependent on the Advisor and its affiliates for certain services that are essential to the Company, including the identification, evaluation, negotiation, purchase, and disposition of real estate and real estate-related investments, management of the daily operations of the Company’s real estate and real estate-related investment portfolio, and other general and administrative responsibilities. In the event that the Advisor is unable to provide such services to the Company, the Company will be required to obtain such services from other sources. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not aware of any environmental liability that could have a material adverse effect on its consolidated financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 14. SUBSEQUENT EVENTS Second Quarter Distribution On July 6, 2016, the Company declared a second quarter distribution in the amount of $ 0.06 0.7 Acquisitions On July 25, 2016, the Company drew $ 4.7 3,759 4.6 |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements as contained within the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the Securities and Exchange Commission (“the SEC”), including the instructions to Form 10-Q and Regulation S-X. The unaudited condensed consolidated financial statements include the accounts of the Company, the OP, their direct and indirect owned subsidiaries, and the accounts of joint ventures that are determined to be variable interest entities for which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows have been included. The Company evaluates the need to consolidate joint ventures and variable interest entities based on standards set forth in ASC Topic 810, Consolidation (“ASC 810”). In determining whether the Company has a controlling interest in a joint venture or a variable interest entity and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the partners/members, as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. As of June 30, 2016, the Company held ownership interests in two unconsolidated joint ventures. Refer to Note 4, “Investments in Unconsolidated Joint Ventures” for additional information. As of June 30, 2016, the Company held variable interests in two variable interest entities and consolidated those entities. Refer to Note 5, “Variable Interest Entities” for additional information. |
Properties Under Development | Properties Under Development The initial cost of properties under development includes the acquisition cost of the property, direct development costs and borrowing costs directly attributable to the development. Borrowing costs associated with direct expenditures on properties under development are capitalized. The amount of capitalized borrowing costs is determined by reference to borrowings specific to the project, where relevant. Borrowing costs are capitalized from the commencement of the development until the date of practical completion where the property is substantially ready for its intended use. Capitalization of borrowing costs is suspended if there are prolonged periods when development activity is interrupted. Practical completion is when the property is capable of operating in the manner intended by management. Interest on projects is based on interest rates in place during the development period, and is capitalized until the project is ready for its intended use. The amount of interest capitalized during the six months ended June 30, 2016, was approximately $ 1.2 |
Reclassification | Reclassifications Certain prior period amounts have been reclassified to conform with current period’s presentation. The reclassifications had no effect on the Company’s financial condition, results of operations, or cash flows. As of June 30, 2016, in respect to the Company’s adoption of Accounting Standards Update (“ASU”) No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), the Company classified deferred financing costs, net of accumulated amortization, as a contra-liability to notes payable on the condensed consolidated balance sheet. ASU 2015-03 requires retrospective application, wherein the balance sheet of each period presented should be adjusted to reflect the effects of the new guidance. Accordingly, for comparative purposes herein, the Company reclassified the December 31, 2015 balance of $ 0.3 0.1 Assets sold or held for sale and related liabilities have been reclassified on the condensed consolidated balance sheets. |
Recent Accounting Pronouncements | Newly Adopted Accounting Pronouncements The Company adopted ASU 2015-03 on a retrospective basis, effective with the quarter ended March 31, 2016. The amendments in ASU 2015-03 require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU 2015-03 is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. The adoption of ASU 2015-03 would change the presentation of debt issuance costs as the Company presents debt issuance costs as deferred financing costs, net on the accompanying condensed consolidated balance sheets. ASU 2015-03 does not address how debt issuance costs related to line-of-credit arrangements should be presented on the balance sheet or amortized. Given this absence of authoritative guidance within ASU 2015-03, the FASB issued ASU 2015-15, Interest Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, which clarifies that the SEC Staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Effective January 2016, the Company presents deferred financing costs, net, as a contra-liability in periods when there is an associated debt liability on the balance sheet, rather than as a deferred asset. If no associated debt liability is recorded on the balance sheet, deferred financing costs will be presented as a deferred asset. The adoption of ASU 2015-03 did not have a material impact on the Company’s condensed consolidated financial statements. The Company adopted ASU 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustment (“ASU 2015-16”) effective with the quarter ended March 31, 2016. The amendments in ASU 2015-16 require an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Further, the acquirer is required to record, in the financial statements for the same period, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Entities must also present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current period earnings by the line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance should be applied prospectively and early adoption is permitted. The adoption of ASU 2015-16 had no impact on the Company’s condensed consolidated financial statements. Recent Accounting Pronouncements The FASB issued the following Accounting Standards Updates (“ASUs”) which could have potential impact to the Company’s consolidated financial statements: In June 2016, the FASB issued ASU no. 2016-13, Financial Instruments Credit Losses (“ASU 2016-13”). ASU 2016-13 requires a financial asset, measured at amortized cost basis to be presented at the net amount expected to be collected. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with adoption permitted for fiscal years beginning after December 15, 2018. Adjustments resulting from adopting ASU 2016-13 shall be applied through a cumulative-effect adjustment to retained earnings. The Company is currently evaluating the impact of the guidance on its condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which effectively defers the adoption of ASU 2014-09 to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2016. Companies may apply either a full retrospective or a modified retrospective approach to adopt this guidance. In 2016, the FASB issued ASU No. 2016-08, ASU No. 2016-09 and ASU No. 2016-12, which provide interpretive clarifications on the new guidance in Topic 606. The Company is currently evaluating the transition methods and the impact of the guidance on its condensed consolidated financial statements. |
REAL ESTATE INVESTMENTS (Tables
REAL ESTATE INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate Investments, Net [Abstract] | |
Schedule of Real Estate Properties | The following table summarizes the estimated fair values of the acquired tangible and intangible assets and assumed liabilities as of the acquisition date (amounts in thousands): Property Buildings and Land Lease Intangibles Below-Market Estimated Fair 8 Octavia $ 1,969 $ 734 $ 143 $ (106) $ 2,740 400 Grove 2,111 1,000 110 (331) 2,890 $ 4,080 $ 1,734 $ 253 $ (437) $ 5,630 |
Real Estate Properties Sales Price | On March 11, 2015, the Company sold the following three properties for the aggregate gross sales price of $ 53.6 Property Location Acquisition Date Gross Original (1) Osceola Village Kissimmee, Florida 10/11/2011 $ 22,000 $ 21,800 (2) Constitution Trail Normal, Illinois 10/21/2011 23,100 18,000 Aurora Commons Aurora, Ohio 3/20/2012 8,500 7,000 Total $ 53,600 $ 46,800 (1) The original purchase price amounts do not include acquisition fees. (2) The original purchase price for Osceola Village included an additional pad which was sold for approximately $ 0.9 |
INVESTMENTS IN UNCONSOLIDATED23
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investment in Unconsolidated Joint Ventures | The following table summarizes the Company’s investments in unconsolidated joint ventures as of June 30, 2016, and December 31, 2015 (amounts in thousands): Ownership Interest Investment Joint Venture Date of Investment June 30, December 31, June 30, December 31, SGO Retail Acquisitions Venture, LLC 3/11/2015 19 % 19 % $ 3,852 $ 4,098 SGO MN Retail Acquisitions Venture, LLC 9/30/2015 10 % 10 % 2,617 2,804 Total $ 6,469 $ 6,902 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization and Business [Abstract] | |
Schedule of Variable Interest Entities | The following reflects the assets and liabilities of the Gelson’s Joint Venture and the Wilshire Joint Venture, which were consolidated by the Company, as of June 30, 2016 (amounts in thousands): June 30, 2016 ASSETS Properties under development and development costs: Land $ 25,851 Building 609 Development costs 2,012 Properties under development and development costs 28,472 Restricted cash 2,867 Cash and cash equivalents 340 Prepaid expenses and other assets, net 22 Tenant receivables, net 25 TOTAL ASSETS (1) $ 31,726 LIABILITIES Notes payable, net (2) $ 18,748 Accounts payable and accrued expenses 360 Amounts due to affiliates 283 Other liabilities 40 TOTAL LIABILITIES $ 19,431 (1) The assets of the Gelson’s Joint Venture and Wilshire Joint Venture can be used only to settle obligations of the respective consolidated joint ventures. (2) Includes reclassification of $ 0.5 |
FUTURE MINIMUM RENTAL INCOME (T
FUTURE MINIMUM RENTAL INCOME (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Minimum Rents [Abstract] | |
Schedule of Future Minimum Rental Receivable For Operating Leases | As of June 30, 2016, the future minimum rental income from the Company’s properties under non-cancelable operating leases, excluding properties held for sale, was as follows (amounts in thousands): Remainder of 2016 $ 3,711 2017 7,036 2018 6,074 2019 5,471 2020 4,543 Thereafter 11,815 Total $ 38,650 |
LEASE INTANGIBLES AND BELOW-M26
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Acquired Lease Intangibles and Below Market Lease Liabilities | As of June 30, 2016 and December 31, 2015, the Company’s acquired lease intangibles and below-market lease liabilities were as follows (amounts in thousands): Lease Intangibles Below-Market Lease Liabilities June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Cost $ 8,191 $ 8,089 $ (4,783) $ (4,463) Accumulated amortization (3,926) (3,799) 1,182 1,160 Total $ 4,265 $ 4,290 $ (3,601) $ (3,303) |
Increases Decreases In Net Income As Result Of Amortization Of Acquired Lease Intangibles | The Company’s amortization of lease intangibles and below-market lease liabilities for the three and six months ended June 30, 2016 and 2015, were as follows (amounts in thousands): Lease Intangibles Below-Market Lease Liabilities Three Months Ended June 30, Three Months Ended June 30, 2016 2015 2016 2015 Amortization $ (235) $ (357) $ 67 $ 95 Lease Intangibles Below-Market Lease Liabilities Six Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Amortization $ (486) $ (950) $ 139 $ 212 |
NOTES PAYABLE, NET (Tables)
NOTES PAYABLE, NET (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt [Abstract] | |
Schedule Of Notes Payable | As of June 30, 2016 and December 31, 2015, the Company’s notes payable, consisted of the following (amounts in thousands): Principal Balance Interest Rates At June 30, December 31, June 30, KeyBank credit facility (1) $ 10,500 $ 2.95 % Secured term loans 24,492 24,701 5.10 % Mortgage loans 9,614 9,690 5.63 % Mortgage loans secured by properties under development (2) 19,200 9.5% - 10.0 % Deferred financing costs, net (3) (735) (339) n/a $ 63,071 $ 34,052 (1) The KeyBank credit facility is a revolving credit facility with an initial maximum aggregate commitment of $ 30.0 60.0 (2) Comprised of $10.7 million and $8.5 million associated with the Company’s investment in the Gelson’s Joint Venture and the Wilshire Joint Venture, respectively. (3) Reclassification of deferred financing costs, net of accumulated depreciation, as a contra-liability in accordance with ASU 2015-03. |
Schedule of maturities for notes payable outstanding | The following is a schedule of future principal payments for all of the Company’s notes payable outstanding as of June 30, 2016 (amounts in thousands): Remainder of 2016 $ 293 2017 39,685 2018 473 2019 23,355 Total (1) $ 63,806 (1) Total future principal payments reflect actual amounts due to creditors, and excludes reclassification of $ 0.7 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Notes Payable | The following table provides the carrying values and fair values of the Company’s notes payable related to continuing operations as of June 30, 2016 and December 31, 2015 (amounts in thousands): Carrying Value (1) Fair Value (2) June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Notes Payable $ 63,071 $ 34,052 $ 64,317 $ 34,760 (1) The carrying value of the Company’s notes payable represents the outstanding principal as of June 30, 2016, and December 31, 2015. The carrying values and fair values of the notes payable include the reclassification of deferred financing costs, net, of approximately $0.7 million and approximately $0.3 million, as a contra-liability, as of June 30, 2016 and December 31, 2015, respectively. (2) The estimated fair value of the notes payable is based upon the indicative market prices of the Company’s notes payable based on prevailing market interest rates. |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Distributions declared and paid | The following tables set forth the quarterly distributions declared to the Company’s common stockholders and Common Unit holders for the six months ended June 30, 2016, and the year ended December 31, 2015. Distributions to its common stockholders and common unit holders for the three months ended June 30, 2016 were declared subsequent to June 30, 2016, as described in Note 14. “Subsequent Events” (amounts in thousands, except per share amounts): Distribution Distribution Per Share of Common Total Common Total Common Distribution Record Payable Stock / Stockholders Unit Holders Total Date Date Common Unit Distribution Distribution Distribution First Quarter 2016 3/31/2016 4/29/2016 $ 0.06 $ 660 $ 26 $ 686 Distribution Distribution Per Share of Common Total Common Total Common Distribution Record Payable Stock / Stockholders Unit Holders Total Date Date Common Unit Distribution Distribution Distribution First Quarter 2015 3/31/2015 4/30/2015 $ 0.06 $ 658 $ 26 $ 684 Second Quarter 2015 6/30/2015 7/30/2015 0.06 654 26 680 Third Quarter 2015 9/30/2015 10/31/2015 0.06 654 26 680 Fourth Quarter 2015 12/31/2015 1/30/2016 0.06 661 25 686 Total $ 2,627 $ 103 $ 2,730 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Company's basic and diluted (loss)earnings per share | The following table sets forth the computation of the Company’s basic and diluted earnings (loss) per share for the three and six months ended June 30, 2016 and 2015 (amounts in thousands, except shares and per share amounts): For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 Numerator - basic and diluted Net income (loss) $ (946) $ (434) $ (1,011) $ 2,688 Net income (loss) attributable to non-controlling interests (35) (15) (37) 246 Net income (loss) attributable to common shares $ (911) $ (419) $ (974) $ 2,442 Denominator - basic and diluted Basic weighted average common shares 11,008,017 10,967,917 11,022,603 10,968,769 Effect of dilutive securities Common Units (1) Diluted weighted average common shares 11,008,017 10,967,917 11,022,603 10,968,769 Earnings (loss) per common share - basic and diluted Net earnings (loss) attributable to common shares $ (0.08) $ (0.04) $ (0.09) $ 0.22 (1) The effect of 422,308 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
Summarized below are the related-party transactions | Summarized separately below are the Advisor related party costs incurred and payable by the Company for the periods presented (amounts in thousands): Advisor Fees Incurred Payable as of Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, Expensed 2016 2015 2016 2015 2016 2015 Acquisition fees $ 56 $ $ 58 $ $ $ Asset management fees 230 210 447 530 71 19 Reimbursement of operating expenses 48 98 4 27 Property management fees 97 150 221 351 3 Disposition fees 115 115 525 Guaranty fees (1) 1 Total $ 546 $ 360 $ 939 $ 1,407 $ 75 $ 49 Capitalized Acquisition fees $ $ $ 273 $ $ $ Leasing fees 92 39 103 66 Legal leasing fees 21 18 33 56 Construction management fees 10 1 15 Financing fees 32 Total $ 113 $ 67 $ 410 $ 169 $ $ (1) Guaranty fees were paid by the Company to its prior advisor, TNP Strategic Retail Advisor, LLC. |
ORGANIZATION AND BUSINESS (Deta
ORGANIZATION AND BUSINESS (Details Textual) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016ft² | Dec. 31, 2015 | |
Organization and Business (Additional Textual) [Abstract] | ||
Number of Real Estate Properties | 10 | |
Net Rentable Area | 694,000 | |
Number of States in which Entity Operates | 6 | |
Delaware Limited Liability Company [Member] | ||
Organization and Business (Additional Textual) [Abstract] | ||
Partnership Interest Ownership Percentage | 96.30% | 96.20% |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Interest Costs Capitalized | $ 0.9 | $ 1.2 | |
Reclassification From Deferred Financing Cost To Notes Payable [Member] | Accounting Standard Update 2015-03 [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0.7 | $ 0.7 | $ 0.3 |
Reclassification From Deferred Financing Cost To Liabilities Held For Sale [Member] | Accounting Standard Update 2015-03 [Member] | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0.1 |
REAL ESTATE INVESTMENTS (Detail
REAL ESTATE INVESTMENTS (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Leases, Acquired-in-Place [Member] | |
Real Estate Investments, Net | $ 253 |
Leases, Acquired-in-Place, Market Adjustment [Member] | |
Real Estate Investments, Net | (437) |
Building Improvements [Member] | |
Real Estate Investments, Net | 4,080 |
Land [Member] | |
Real Estate Investments, Net | 1,734 |
Estimated Fair Value of Net Assets Acquired [Member] | |
Real Estate Investments, Net | 5,630 |
Octavia Gateway Holdings, LLC [Member] | Leases, Acquired-in-Place [Member] | |
Real Estate Investments, Net | 143 |
Octavia Gateway Holdings, LLC [Member] | Leases, Acquired-in-Place, Market Adjustment [Member] | |
Real Estate Investments, Net | (106) |
Octavia Gateway Holdings, LLC [Member] | Building Improvements [Member] | |
Real Estate Investments, Net | 1,969 |
Octavia Gateway Holdings, LLC [Member] | Land [Member] | |
Real Estate Investments, Net | 734 |
Octavia Gateway Holdings, LLC [Member] | Estimated Fair Value of Net Assets Acquired [Member] | |
Real Estate Investments, Net | 2,740 |
Grove Street Hayes Valley, LLC [Member] | Leases, Acquired-in-Place [Member] | |
Real Estate Investments, Net | 110 |
Grove Street Hayes Valley, LLC [Member] | Leases, Acquired-in-Place, Market Adjustment [Member] | |
Real Estate Investments, Net | (331) |
Grove Street Hayes Valley, LLC [Member] | Building Improvements [Member] | |
Real Estate Investments, Net | 2,111 |
Grove Street Hayes Valley, LLC [Member] | Land [Member] | |
Real Estate Investments, Net | 1,000 |
Grove Street Hayes Valley, LLC [Member] | Estimated Fair Value of Net Assets Acquired [Member] | |
Real Estate Investments, Net | $ 2,890 |
REAL ESTATE INVESTMENTS (Deta35
REAL ESTATE INVESTMENTS (Details 1) $ in Thousands | 1 Months Ended | |
Mar. 11, 2015USD ($) | ||
Gross Sales Price | $ 53,600 | |
Original Purchase Price | 46,800 | [1] |
Osceola Village Kissimmee, Florida [Member] | ||
Gross Sales Price | 22,000 | |
Original Purchase Price | 21,800 | [1],[2] |
Constitution Trail Normal, Illinois [Member] | ||
Gross Sales Price | 23,100 | |
Original Purchase Price | 18,000 | [1] |
Aurora Commons Aurora, Ohio [Member] | ||
Gross Sales Price | 8,500 | |
Original Purchase Price | $ 7,000 | [1] |
[1] | The original purchase price amounts do not include acquisition fees. | |
[2] | The original purchase price for Osceola Village included an additional pad which was sold for approximately $0.9 million prior to this transaction. |
REAL ESTATE INVESTMENTS (Deta36
REAL ESTATE INVESTMENTS (Details Textual) | Jun. 14, 2016USD ($)ft² | Apr. 04, 2016USD ($) | Mar. 11, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) |
Payments to Acquire Interest in Joint Venture | $ 0 | $ 4,555,000 | |||||
Sales of Real Estate | $ 53,600,000 | ||||||
Payments to Acquire Real Estate | $ 5,600,000 | 5,630,000 | 0 | ||||
Operating Income (Loss) | $ (634,000) | $ (725,000) | (827,000) | (2,025,000) | |||
Proceeds from Sale of Other Real Estate | 8,737,000 | 53,058,000 | |||||
Area of Real Estate Property | ft² | 5,640 | ||||||
Business Acquisition, Transaction Costs | 200,000 | 200,000 | |||||
Gains (Losses) on Sales of Investment Real Estate | 605,000 | 99,000 | $ 614,000 | 4,882,000 | |||
Leases, Acquired-in-Place [Member] | |||||||
Finite-Lived Intangible Asset, Useful Life | 14 years | ||||||
Leases, Acquired-in-Place, Market Adjustment [Member] | |||||||
Finite-Lived Intangible Asset, Useful Life | 14 years 2 months 12 days | ||||||
Bloomingdale Hills [Member] | |||||||
Sales of Real Estate | $ 9,200,000 | ||||||
Operating Income (Loss) | $ 25,000 | $ 73,000 | |||||
Repayments of Debt | 5,300,000 | ||||||
Repayments of Lines of Credit | 3,000,000 | ||||||
Gains (Losses) on Sales of Investment Real Estate | $ 600,000 | ||||||
SGO Joint Venture [Member] | |||||||
Payments to Acquire Interest in Joint Venture | 4,500,000 | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.00% | 19.00% | |||||
Repayments of Debt | $ 36,400,000 | ||||||
Osceola Village Kissimmee, Florida [Member] | |||||||
Sales of Real Estate | 22,000,000 | ||||||
Proceeds from Sale of Other Real Estate | $ 900,000 | ||||||
2015 Sale of Properties [Member] | |||||||
Sales of Real Estate | $ 53,600,000 | ||||||
Operating Income (Loss) | $ 16,000 | $ 300,000 |
INVESTMENTS IN UNCONSOLIDATED37
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 6,469 | $ 6,902 |
SGO Retail Acquisitions Venture, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 19.00% | 19.00% |
Equity Method Investments | $ 3,852 | $ 4,098 |
SGO MN Retail Acquisitions Venture, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 10.00% | 10.00% |
Equity Method Investments | $ 2,617 | $ 2,804 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Properties under development and development costs: | |||||
Building | $ 609 | $ 0 | |||
Properties under development and development costs | 28,472 | 0 | |||
Restricted cash | 5,869 | 2,693 | |||
Cash and cash equivalents | 3,265 | 8,793 | $ 3,581 | $ 3,211 | |
Tenant receivables, net | 1,218 | 1,664 | |||
TOTAL ASSETS | 121,307 | 101,168 | |||
LIABILITIES | |||||
Notes payable, net | 63,071 | 34,052 | |||
Accounts payable and accrued expenses | 1,119 | 1,486 | |||
Amounts due to affiliates | 75 | 49 | |||
Other liabilities | 1,502 | 1,479 | |||
TOTAL LIABILITIES | 70,595 | $ 48,503 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Properties under development and development costs: | |||||
Land | 25,851 | ||||
Building | 609 | ||||
Development costs | 2,012 | ||||
Properties under development and development costs | 28,472 | ||||
Restricted cash | 2,867 | ||||
Cash and cash equivalents | 340 | ||||
Prepaid expenses and other assets, net | 22 | ||||
Tenant receivables, net | 25 | ||||
TOTAL ASSETS | [1] | 31,726 | |||
LIABILITIES | |||||
Notes payable, net | [2] | 18,748 | |||
Accounts payable and accrued expenses | 360 | ||||
Amounts due to affiliates | 283 | ||||
Other liabilities | 40 | ||||
TOTAL LIABILITIES | $ 19,431 | ||||
[1] | The assets of the Gelson’s Joint Venture and Wilshire Joint Venture can be used only to settle obligations of the respective consolidated joint ventures. | ||||
[2] | Includes reclassification of $0.5 million of deferred financing costs, net, as a contra-liability. The creditors of the consolidated joint ventures do not have recourse to the general credit of the Company. The notes payable of the consolidated joint ventures are not guaranteed by the Company. |
VARIABLE INTEREST ENTITIES (D39
VARIABLE INTEREST ENTITIES (Details Textual) $ in Thousands | Jun. 14, 2016USD ($) | Mar. 08, 2016USD ($) | Mar. 07, 2016USD ($) | Jan. 05, 2016USD ($) | Dec. 14, 2015USD ($) | Jan. 28, 2016USD ($)ft² | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) |
Payments to Acquire Interest in Joint Venture | $ 0 | $ 4,555 | ||||||
Payments to Acquire Real Estate | $ 5,600 | 5,630 | $ 0 | |||||
Deferred Costs | $ 500 | |||||||
Gelson’s Development Joint Venture [Member] | ||||||||
Capital Interest Percentage in Joint Venture | 100.00% | |||||||
Profit Interest Percentage in Joint Venture | 50.00% | |||||||
Area of Land | ft² | 38,000 | |||||||
Profit sharing ratio of joint Venture | 50.00% | |||||||
Lease Expiration Term | 20 years | |||||||
Gelson’s Development Joint Venture [Member] | Initial Contribution [Member] | ||||||||
Payments to Acquire Interest in Joint Venture | $ 7,000 | |||||||
Gelson’s Development Joint Venture [Member] | Subsequent Contributuion [Member] | ||||||||
Payments to Acquire Interest in Joint Venture | $ 700 | |||||||
Gelson’s Development Joint Venture [Member] | Buchanan Mortgage Holdings [Member] | ||||||||
Proceeds from Loan Originations | $ 10,700 | |||||||
Payments to Acquire Real Estate | $ 13,000 | |||||||
Wilshire Joint Venture 3032 [Member] | ||||||||
Capital Interest Percentage in Joint Venture | 100.00% | |||||||
Profit Interest Percentage in Joint Venture | 50.00% | |||||||
Payments to Acquire Interest in Joint Venture | $ 5,700 | |||||||
Proceeds from Loan Originations | $ 8,500 | |||||||
Payments to Acquire Real Estate | $ 13,500 | |||||||
Payments for Other Deposits | $ 100 | $ 500 | ||||||
Wilshire Joint Venture [Member] | ||||||||
Profit sharing ratio of joint Venture | 50.00% | |||||||
3032 Wilshire SM [Member] | ||||||||
Profit sharing ratio of joint Venture | 50.00% | |||||||
Sunset Gardner LA, LLC [Member] | ||||||||
Profit sharing ratio of joint Venture | 50.00% |
FUTURE MINIMUM RENTAL INCOME (D
FUTURE MINIMUM RENTAL INCOME (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
Remainder of 2016 | $ 3,711 |
2,017 | 7,036 |
2,018 | 6,074 |
2,019 | 5,471 |
2,020 | 4,543 |
Thereafter | 11,815 |
Total | $ 38,650 |
FUTURE MINIMUM RENTAL INCOME 41
FUTURE MINIMUM RENTAL INCOME (Details Textual) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Security Deposit | $ 0.2 | $ 0.2 |
Operating Leases Remaining Term | 20 years | |
Operating Leases Weighted Average Remaining Term | 5 years |
LEASE INTANGIBLES AND BELOW-M42
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Lease Intangibles, Cost | $ 8,191 | $ 8,089 |
Lease Intangibles, Accumulated amortization | (3,926) | (3,799) |
Lease Intangibles | 4,265 | 4,290 |
Below - Market Lease Liabilities, Cost | (4,783) | (4,463) |
Below - Market Lease Liabilities, Accumulated amortization | 1,182 | 1,160 |
Below - Market Lease Liabilities | $ (3,601) | $ (3,303) |
LEASE INTANGIBLES AND BELOW-M43
LEASE INTANGIBLES AND BELOW-MARKET LEASE LIABILITIES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Amortization of lease intangibles and below-market lease liabilities | ||||
Lease Intangibles, Amortization | $ (235) | $ (357) | $ (486) | $ (950) |
Below - Market Lease Liabilities, Amortization | $ 67 | $ 95 | $ 139 | $ 212 |
NOTES PAYABLE, NET (Details)
NOTES PAYABLE, NET (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Notes Payable | |||
Principal Balance | $ 63,071 | $ 34,052 | |
Deferred Finance Costs, Net | [1] | (735) | (339) |
Key Bank credit facility [Member] | |||
Notes Payable | |||
Principal Balance | [2] | $ 10,500 | 0 |
Interest Rate | [2] | 2.95% | |
Secured term loans [Member] | |||
Notes Payable | |||
Principal Balance | $ 24,492 | 24,701 | |
Interest Rate | 5.10% | ||
Mortgage loans [Member] | |||
Notes Payable | |||
Principal Balance | $ 9,614 | 9,690 | |
Interest Rate | 5.63% | ||
Mortgage Loans Secured By Properties Under Development [Member] | |||
Notes Payable | |||
Principal Balance | [3] | $ 19,200 | $ 0 |
Mortgage Loans Secured By Properties Under Development [Member] | Minimum [Member] | |||
Notes Payable | |||
Interest Rate | [3] | 9.50% | |
Mortgage Loans Secured By Properties Under Development [Member] | Maximum [Member] | |||
Notes Payable | |||
Interest Rate | [3] | 10.00% | |
[1] | Reclassification of deferred financing costs, net of accumulated depreciation, as a contra-liability in accordance with ASU 2015-03. | ||
[2] | The KeyBank credit facility is a revolving credit facility with an initial maximum aggregate commitment of $30.0 million (the “Facility Amount”). Subject to certain terms and conditions contained in the loan documents, the Company may request that the Facility Amount be increased to a maximum of $60.0 million. The KeyBank credit facility matures on August 4, 2017. Each loan made pursuant to the Key Bank credit facility will be either a LIBOR rate loan or a base rate loan, at the election of the Company, plus an applicable margin, as defined. Monthly payments are interest only with the entire principal balance and all outstanding interest due at maturity. The Company will pay KeyBank an unused commitment fee, quarterly in arrears, which will accrue at 0.30% per annum, if the usage under the KeyBank credit facility is greater than 50% of the Facility Amount. The Company is providing a guaranty of all of its obligations under the KeyBank credit facility and all other loan documents in connection with the KeyBank credit facility. As of June 30, 2016, the KeyBank credit facility was secured by Pinehurst Square, Topaz Marketplace, 8 Octavia and 400 Grove. For information regarding recent draws under the Key Bank credit facility, see “ Recent Financing Transactions - KeyBank Credit Facility.” | ||
[3] | Comprised of $10.7 million and $8.5 million associated with the Company’s investment in the Gelson’s Joint Venture and the Wilshire Joint Venture, respectively. |
NOTES PAYABLE, NET (Details 1)
NOTES PAYABLE, NET (Details 1) $ in Thousands | Jun. 30, 2016USD ($) | |
Schedule of maturities for notes payable outstanding | ||
Remainder of 2016 | $ 293 | |
2,017 | 39,685 | |
2,018 | 473 | |
2,019 | 23,355 | |
Total | $ 63,806 | [1] |
[1] | Total future principal payments reflect actual amounts due to creditors, and excludes reclassification of $0.7 million deferred financing costs, net. |
NOTES PAYABLE, NET (Details Tex
NOTES PAYABLE, NET (Details Textual) - USD ($) $ in Millions | Jun. 09, 2016 | Mar. 07, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Notes Payable | |||||||
Interest expense payable | $ 0.3 | $ 0.3 | $ 0.2 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 60 | $ 60 | |||||
Line of Credit Facility, Commitment Fee Description | The Company will pay KeyBank an unused commitment fee, quarterly in arrears, which will accrue at 0.30% per annum if the usage under the KeyBank credit facility is greater than 50% of the Facility Amount. | ||||||
Interest Costs Capitalized | 0.9 | $ 1.2 | |||||
Interest Expense, Debt | 0.5 | $ 1.4 | 1.1 | $ 3 | |||
Amortization of Financing Costs | 0.1 | $ 0.1 | 0.2 | $ 0.3 | |||
Reclassification From Deferred Financing Cost To Notes Payable [Member] | Accounting Standard Update 2015-03 [Member] | |||||||
Notes Payable | |||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0.7 | 0.7 | $ 0.3 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||||
Notes Payable | |||||||
Interest expense payable | 0.2 | 0.2 | |||||
Amortization of Financing Costs | $ 0.2 | $ 0.3 | |||||
Wilshire Joint Venture 3032 [Member] | |||||||
Notes Payable | |||||||
Proceeds from Loan Originations | $ 6 | ||||||
Eight Octavia and Four Hundred Grove [Member] | |||||||
Notes Payable | |||||||
Proceeds from Loan Originations | $ 7.5 | ||||||
Wilshire Loan [Member] | Buchanan Mortgage Holdings, LLC [Member] | |||||||
Notes Payable | |||||||
Interest Rate | 10.00% | 10.00% | |||||
Proceeds from Loan Originations | $ 8.5 | ||||||
Debt Instrument, Maturity Date | Mar. 7, 2017 | ||||||
Gelson’s Loan [Member] | Buchanan Mortgage Holdings, LLC [Member] | |||||||
Notes Payable | |||||||
Interest Rate | 9.50% | 9.50% | |||||
Proceeds from Loan Originations | $ 10.7 | ||||||
Debt Instrument, Maturity Date | Jan. 27, 2017 | ||||||
Revolving Credit Facility [Member] | |||||||
Notes Payable | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30 | $ 30 |
FAIR VALUE DISCLOSURES (Details
FAIR VALUE DISCLOSURES (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | |
Notes Payable | |||
Notes Payable, Carrying Value | [1] | $ 63,071 | $ 34,052 |
Notes Payable, Fair Value | [2] | $ 64,317 | $ 34,760 |
[1] | The carrying value of the Company’s notes payable represents the outstanding principal as of June 30, 2016, and December 31, 2015. The carrying values and fair values of the notes payable include the reclassification of deferred financing costs, net, of approximately $0.7 million and approximately $0.3 million, as a contra-liability, as of June 30, 2016 and December 31, 2015, respectively. | ||
[2] | The estimated fair value of the notes payable is based upon the indicative market prices of the Company’s notes payable based on prevailing market interest rates. |
FAIR VALUE DISCLOSURES (Detai48
FAIR VALUE DISCLOSURES (Details Textual) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Reclassification From Deferred Financing Cost To Notes Payable [Member] | Accounting Standard Update 2015-03 [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0.7 | $ 0.3 |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |
Company's common stockholders and non-controlling Common Unit holders | ||||||
Distribution Record Date | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |
Distribution Payable Date | Apr. 29, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Jul. 30, 2015 | Apr. 30, 2015 | |
Distribution Per Common Stock /Common Unit | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |
Total Common Stockholders Distribution | $ 660 | $ 661 | $ 654 | $ 654 | $ 658 | $ 2,627 |
Total Common Unit Holders Distribution | 26 | 25 | 26 | 26 | 26 | 103 |
Total Distribution | $ 686 | $ 686 | $ 680 | $ 680 | $ 684 | $ 2,730 |
EQUITY (Details Textual)
EQUITY (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Aug. 07, 2015 | |
Stockholders' Equity Note [Abstract] | |||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | ||||
Stock Redeemed or Called During Period, Value | $ 256,000 | ||||
Redemption Price for Shares Percentage | 100.00% | ||||
Amended and Restated Share Redemption, Redemption Amount Minimum Limit | $ 5,000 | $ 5,000 | $ 5,000 | ||
Common Stock Outstanding Percentage | 5.00% | ||||
Minimum Percentage of Taxable Income Distributed to Shareholders | 90.00% | ||||
Special Distribution [Member] | |||||
Stockholders' Equity Note [Abstract] | |||||
Share Redemption Program, Redemption Percentage | 100.00% | ||||
Death of a shareholder [Member] | |||||
Stockholders' Equity Note [Abstract] | |||||
Stock Redeemed or Called During Period, Value | $ 2,000,000 | ||||
Disability of a shareholder [Member] | |||||
Stockholders' Equity Note [Abstract] | |||||
Stock Redeemed or Called During Period, Value | $ 1,000,000 | ||||
Common Stock [Member] | |||||
Stockholders' Equity Note [Abstract] | |||||
Stock Redeemed or Called During Period, Shares | 38,868 | ||||
Stock Redeemed or Called During Period, Value | $ 0 | ||||
Common Stock [Member] | Share Redemption Program [Member] | |||||
Stockholders' Equity Note [Abstract] | |||||
Stock Redeemed or Called During Period, Shares | 404,771 | 8,147 | 38,868 | 77,916 | |
Stock Redeemed or Called During Period, Value | $ 3,300,000 | $ 54,000 | $ 300,000 | $ 600,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Numerator - basic and diluted | |||||
Net income (loss) | $ (946) | $ (434) | $ (1,011) | $ 2,688 | |
Net income (loss) attributable to non-controlling interests | (35) | (15) | (37) | 246 | |
Net income (loss) attributable to common stockholders | $ (911) | $ (419) | $ (974) | $ 2,442 | |
Denominator - basic and diluted | |||||
Basic weighted average common shares | 11,008,017 | 10,967,917 | 11,022,603 | 10,968,769 | |
Effect of dilutive securities Common Units | [1] | 0 | 0 | 0 | 0 |
Diluted weighted average common shares | 11,008,017 | 10,967,917 | 11,022,603 | 10,968,769 | |
Earnings (loss) per common share - basic and diluted | |||||
Net earnings (loss) attributable to common shares | $ (0.08) | $ (0.04) | $ (0.09) | $ 0.22 | |
[1] | The effect of 422,308 convertible Common Units pursuant to the redemption rights outlined in the Company’s registration statement on Form S-11 have not been included as they would not be dilutive. |
EARNINGS PER SHARE (Details Tex
EARNINGS PER SHARE (Details Textual) | 6 Months Ended |
Jun. 30, 2016shares | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Antidiluted Convertible Common Units of Redemption | 422,308 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Expensed Acquisition Fees [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | $ 56 | $ 0 | $ 58 | $ 0 | ||
Related-party costs, Payable | 0 | 0 | $ 0 | |||
Expensed Asset management Fees [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | 230 | 210 | 447 | 530 | ||
Related-party costs, Payable | 71 | 71 | 19 | |||
Expensed Reimbursement Of Operating Expenses [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | 48 | 0 | 98 | 0 | ||
Related-party costs, Payable | 4 | 4 | 27 | |||
Expensed Property Management Fees [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | 97 | 150 | 221 | 351 | ||
Related-party costs, Payable | 0 | 0 | 3 | |||
Expensed Disposition Fees [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | 115 | 0 | 115 | 525 | ||
Related-party costs, Payable | 0 | 0 | 0 | |||
Expensed Guaranty Fees [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | [1] | 0 | 0 | 0 | 1 | |
Related-party costs, Payable | [1] | 0 | 0 | 0 | ||
Capitalized Acquisition Fees [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | 0 | 0 | 273 | 0 | ||
Related-party costs, Payable | 0 | 0 | 0 | |||
Capitalized Leasing Fees [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | 92 | 39 | 103 | 66 | ||
Related-party costs, Payable | 0 | 0 | 0 | |||
Capitalized Legal Leasing Fees [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | 21 | 18 | 33 | 56 | ||
Related-party costs, Payable | 0 | 0 | 0 | |||
Capitalized Construction Management Fees [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | 0 | 10 | 1 | 15 | ||
Related-party costs, Payable | 0 | 0 | 0 | |||
Financing Fees, Expensed [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | 0 | 0 | 0 | 32 | ||
Related-party costs, Payable | 0 | 0 | 0 | |||
Expensed [Member] | Advisor Fees [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | 546 | 360 | 939 | 1,407 | ||
Related-party costs, Payable | 75 | 75 | 49 | |||
Capitalized [Member] | Advisor Fees [Member] | ||||||
Summarized below are the related-party transactions | ||||||
Related-party costs, Incurred | 113 | $ 67 | 410 | $ 169 | ||
Related-party costs, Payable | $ 0 | $ 0 | $ 0 | |||
[1] | Guaranty fees were paid by the Company to its prior advisor, TNP Strategic Retail Advisor, LLC. |
RELATED PARTY TRANSACTIONS (D54
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Aug. 04, 2014 | Jul. 09, 2013 | ||
Related Party Transactions [Abstract] | ||||||||
Property Management Fee, Percent Fee | 4.00% | |||||||
Market-based property management fee of gross revenues | 5.00% | |||||||
Company pays Advisor an acquisition fee for cost of investments acquired | 1.00% | |||||||
Company pays Advisor of the amount funded by the Company to acquire or originate real estate-related loans | 1.00% | |||||||
Advisor or its affiliates also will be paid disposition fees of a customary and competitive real estate commission | 50.00% | |||||||
Advisor or its affiliates also will be paid disposition fees of a customary and competitive real estate commission, not to exceed | 3.00% | |||||||
Reimbursement Of Operating Expenses Description | The Company reimburses the Advisor for all expenses paid or incurred by the Advisor in connection with the services provided to the Company, subject to the limitation that the Company will not reimburse the Advisor for any amount by which the Company’s total operating expenses (including the asset management fee described below) at the end of the four preceding fiscal quarters exceeded the greater of (1) 2% of its average invested assets (as defined in the Company’s Articles of Amendment and Restatement (the “Charter”)); or (2) 25% of its net income (as defined in the Charter) determined without reduction for any additions to depreciation, bad debts or other similar non-cash expenses and excluding any gain from the sale of the Company’s assets for that period (the “2%/25% Guideline”). The Advisor is required to reimburse the Company quarterly for any amounts by which total operating expenses exceed the 2%/25% Guideline in the previous expense year that the independent directors do not approve. The Company will not reimburse the Advisor for any of its personnel costs or other overhead costs except for customary reimbursements for personnel costs under property management agreements entered into between the OP and the Advisor or its affiliates. Notwithstanding the above, the Company may reimburse the Advisor for expenses in excess of the 2%/25% Guideline if a majority of the independent directors determine that such excess expenses are justified based on unusual and non-recurring factors. | |||||||
SGO Joint Venture [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.00% | 19.00% | ||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 100,000 | $ 300,000 | $ 300,000 | $ 500,000 | ||||
SRT Manager [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Operating Partnership Interest | 8.33% | 8.33% | ||||||
Full Redemption Amount Paid | [1] | $ 2,100,000 | ||||||
Asset management fees [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related-party costs, Incurred | $ 250,000 | |||||||
Company pays Advisor a monthly asset management fee on all real estate investments | 0.60% | |||||||
Financing coordination fees [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Payment of financial Coordination fees | 1.00% | 1.00% | ||||||
Mortgage Notes [Member] | ||||||||
Related Party Transactions [Abstract] | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 12.00% | |||||||
[1] | Guaranty fees were paid by the Company to its prior advisor, TNP Strategic Retail Advisor, LLC. |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) $ / shares in Units, $ in Thousands | Jul. 06, 2016USD ($)$ / shares | Jul. 27, 2016USD ($)ft² | Jul. 25, 2016USD ($) | Mar. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2015USD ($) |
Subsequent Event [Line Items] | |||||||||
Dividend Distribution To Common Stockholders And Unit Holders | $ 686 | $ 686 | $ 680 | $ 680 | $ 684 | $ 2,730 | |||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | ||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividend Distribution To Common Stockholders And Unit Holders | $ 700 | ||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.06 | ||||||||
Subsequent Event [Member] | Fulton Street Shops [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Area of Land | ft² | 3,759 | ||||||||
Business Combination, Consideration Transferred | $ 4,600 | ||||||||
Subsequent Event [Member] | Key Bank [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from Secured Lines of Credit | $ 4,700 |